Leading personal care consumer goods manufacturer PZ Cussons has ventured into the Ksh 3 trillion Halal personal care market in a diversification move that will see the firm locally produce a range of Imperial Leather Oud products for domestic consumption and export to the Middle East and Asia in a bid to fill a gap in the fast-growing Muslim and non-Muslim consumer segment.
Mr. Sekar Ramamoorthy, the PZ Cussons Managing Director for Kenya and Ghana announced earlier today at the official launch ceremony of this latest innovation that its research had revealed the unmet pent-up demand in Kenya with an estimated Ksh 12 billion addressable market that is expected to grow at 6 percent annually.
“We are pioneering this initially for Kenya’s burgeoning population of nearly 6 million Muslims, a niche that we estimate will reach 8 million people by 2030,” said Ramamoorthy. He added that its diversification into halal personal care was informed by PZ Cussons’ manufacturing, research, and development philosophy, leveraging the expertise at its Ksh. 4.4 billion (£26 million) global innovation center located in the UK.
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One of the key drivers of the growing Halal market is Muslim women, especially millennials who are considered key contributors to economic growth in business and entrepreneurship. Though from diverse economies, cultures and geographies, they are largely seen as younger (at 23 years old) than the global average (of 28 years old), more educated, holding new attitudes and using new technologies. The broad rise in niche product development targeting them, is a clear indication that the investment in girls’ and women’s education is paying off.
Today, the global population of working Muslim women is estimated at 155 million, and their combined disposable income is estimated at a whopping $1 trillion. Analysts point out that a 50 percent rise in Muslim women’s economic activity by the year 2050 could add another $5.7 trillion to their total income.
According to Mr. Ramamoorthy, the firm’s plant meets halal expectations in which every ingredient must be traceable and manufactured using only ingredients and processes that are permissible under Islamic principles. He explained that Oud is a distinctive musky scent from the wood of the Agarwood tree, positioned to deliver a premium, high-quality experience that the Kenyan Halal market currently lacks.
“Made from the oils extracted from this special tree via a complex and unique natural process, Oud has been used as medicine, incense and aromatic oils for thousands of years and remains highly valued for its rich, sweet, woody, aromatic and complex scent,” said Ramamoorthy.
Echoing his remarks, Dr. Fatuma Hirsi, a former PS for ICT and Tourism ministries and a Certified Executive Coach, explained that there is an urgent need for Kenya to establish official Halal standards and certification for personal care and beauty products.
She noted that Halal products have remained a niche product category for years and are now gaining immense popularity in Kenya and globally due to the assurance of being high-quality and cruelty-free.
“Halal consumption has become a lifestyle and culture of Muslim communities in various parts of the world. This is because it fulfills the demands of Islamic religious law and is reflected in the phenomenon of consumers choosing halal food, wearing Muslimah clothes, recreating to Muslim-friendly destinations, or transacting using shariah products, said Dr. Hirsi.
To truly capitalize on the opportunities in the halal personal care market, she called for a robust framework that supports local manufacturers through research, innovation, and infrastructure development.
Dr. Hirsi noted that Kenya has an immense opportunity to develop Halal products for domestic consumption and export markets by examining international standards, regulations on prohibited ingredients, inconsistent labeling requirements, industry dynamics, counterfeiting and the complex nature of safety assessments by regulators, distributors and manufacturers to sufficiently promote the Halal industry.
“Kenya’s regulators will need to align with international standards, promote halal certification, and ensure consistent labeling and monitoring to build consumer trust and expand market access,” she added, pointing out that the work to evaluate ingredients, formulations, microbial contamination, packaging and labeling was clearly cut out for them.
In addition, Dr. Hirsi explained that for Kenya’s Halal industry to grow optimally, it will need to build local supply chains, dedicate sufficient resources to quality risk management and testing capacity and address resulting public health implications.
“This calls for investment in continuous product monitoring, heightened vigilance, embracing a dynamic regulatory approach, periodic ingredient reviews, a centralized product approval system, and alignment with global manufacturing standards. In addition, we must carry out targeted consumer education focusing on quality attributes, adverse reaction reporting, label reading and counterfeit awareness”, stated Dr. Hirsi.